STI COLLEGE STA.
MARIA
STA. MARIA, BULACAN
BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT
In partial fulfillment of the requirements for the subject
(Strategic Management)
SUBMITTED TO:
SUBMITTED BY:
05 Performance
Task 1
Strategic Management
I. Company Background
Unilever, a British-Dutch multinational consumer goods company,
has a rich history dating back to the late 19th century. Formed through
the merger of Lever Brothers (UK) and Margarine Unilever (Netherlands) in
1930, Unilever has grown into a global giant with a portfolio of over 400
brands spanning food, beverages, cleaning agents, and personal care
products.
Unilever's mission is to make sustainable living commonplace,
reflecting their commitment to integrating sustainability into everyday life.
Their vision is to be the global leader in sustainable business,
demonstrating how a purpose-led, future-fit business can drive superior
performance. This vision emphasizes their ambition to set the benchmark
for sustainable practices worldwide. Unilever's objectives are intricately
linked to their Sustainable Living Plan (USLP), focusing on improving health
and well-being, reducing environmental impact, and enhancing livelihoods.
These objectives are translated into specific, measurable targets across
their diverse product categories and operations. Unilever operates under a
framework of policies encompassing its sourcing, manufacturing,
distribution, and marketing practices. These policies are grounded in their
commitment to the UN Sustainable Development Goals and reflect their
dedication to ethical business conduct, human rights, and environmental
protection.
II. Industry analysis / Assestment Tool A.
Strong brands
Diverse range of products
Large scale economies Products are
Market presents on a global Strenghts
easy to copy
scale Business
diversification
is limited
Dependence
on Merchants
Unilever
Opportunties SWOT Weaknesses
Analysis
Diversification of the
business
Health related product
development
Environmentally-
friendly business
development Threats The rivalry is fierce
Growth of the market The opportunities of retailer’s
brands is growing
Imitation of a product
Assestment Tool B. / Poter’s 5 forces
1. Competitive rivalry or competition: Strong force
[Link] power of buyers or customers: Strong force
[Link] power of suppliers: Moderate force
[Link] of substitutes or substitution: Weak force
[Link] of new entrants or new entry: Weak force
This Five Forces analysis highlights competitive rivalry and the bargaining
power of buyers as the issues of highest intensity affecting Unilever’s
business. The bargaining power of suppliers is also important but has
limited impact on the company. The threats of substitutes and new entry
have a limited effect on Unilever and the consumer goods industry
environment. This Five Forces analysis indicates that strategic action must
prioritize competition and the bargaining power of customers.
III. Recommendation
Unilever to further build its competitive advantages through product
innovation. This effort should reflect Unilever’s generic competitive
strategy and intensive growth strategies, which emphasize product
uniqueness as a strategic approach. Considering the buyer power
evaluated in this Five Forces analysis, it is also recommended that the
company enhance its customer relations to attract and retain more
consumers and in applying Unilever’s company culture (business
culture) in customer relations processes, higher quality in the processing
of external communications can improve consumers’ perception of the
company and its brands. The company has the strengths needed to
strategically address these issues, as discussed in the SWOT analysis of
Unilever.
IV. Management Lessons Learned
After researching into Unilever's sustainability initiatives, several key
takeaways have come out. First, I've realized the crucial importance of a
long-term vision. Sustainable business practices require a commitment
that extends beyond short-term financial gains, demanding investments
that may not yield immediate profits but are essential for long-term
viability. Secondly, I've seen how vital integration is. Sustainability
cannot be a separate initiative; it must be woven into every aspect of the
business, from product development and sourcing to manufacturing and
distribution. This holistic approach ensures that sustainability is not just a
superficial add-on but a core business principle. Thirdly, my research
highlighted the essential role of collaboration. Addressing complex
sustainability challenges requires a collective effort, involving suppliers,
customers, NGOs, governments, and even competitors. Building these
partnerships is crucial for creating systemic change. Fourthly, I've learned
that transparency and accountability are paramount. Openly
communicating sustainability performance and engaging with
stakeholders builds trust and demonstrates a genuine commitment to
positive impact. Finally, and perhaps most importantly, my research has
solidified my belief that a purpose-driven business model, where
sustainability is at the heart of the organization's mission, can be a
powerful driver of performance. It not only enhances brand reputation and
attracts talent but also creates new market opportunities and fosters long-
term business success.
V. Bibliography
Unilever PLC. (2025, February 3). Unilever Global. Unilever.
[Link]
Unilever PLC. (2024, November 19). Leading the next era of corporate
sustainability. Unilever. [Link]